KUALA LUMPUR: More than 80% of eligible M100 Sumbangan Asas Rahmah (Sara) recipients have used the one-off aid to purchase essential goods, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said the remaining 20% who have yet to redeem the aid are mostly from the higher-income group.
“More than 80% have used their Sara funds, while over 20% have not, especially among the well-off, including MPs and ministers.
“I hope those in this category can allow the funds to be returned to the poor in 2026. But if they wish to use it to help their poorer neighbours, that’s good too,” he told the Dewan Rakyat during Minister’s Question Time on Thursday (Oct 30).
He said the Sara initiative, one of the government’s key efforts to eradicate hardcore poverty, has also helped boost small local businesses.
“Through the Sara programme, we’ve expanded from about 180 to over 2,000 small shops nationwide that benefit from the system. This allows small traders in villages and rural districts to grow their businesses,” he said.
Anwar said the programme would continue beyond 2026, adding that it had been well received because it empowers recipients to buy daily necessities according to their family needs.
He also noted that the poverty rate remains higher in certain states, particularly in Sabah, Sarawak, Kelantan, Terengganu and Kedah, compared to more developed west coast states.
“Due to the higher incidence of poverty in these states, programmes such as STR (Sumbangan Tunai Rahmah) and i-Sara are channelled more there. We also work closely with the Sarawak Premier and Sabah Chief Minister to tailor aid delivery, especially in longhouse areas and rural interiors,” he said.
Anwar reiterated that the government’s focus is to eliminate hardcore poverty while addressing relative poverty, which has slightly increased from 16.6% in 2022 to 16.7% according to the Statistics Department (DOSM).
“The poverty line has also risen from RM6,338 in 2022 to RM7,017 in 2024, which reflects changing living costs,” he said, adding that federal and state governments, religious bodies, and welfare agencies were all working together under the Payung Rahmah framework.
He said the government has allocated RM15bil this year under various Rahmah initiatives, with RM600mil specifically for Sara in 2026, to reduce inequality and support 560,000 poor households under the Welfare Department’s database.
“This includes STR, i-Sara and welfare aid, which together amount to nearly RM20bil. All these measures are part of our effort to narrow the gap between the rich and poor,” he said.
To further ease the burden of lower-income groups, Anwar said the government had raised the minimum wage twice — from RM1,200 to RM1,700 — and increased civil servants’ salaries by up to 30% for the lowest-income category.
“This is to help those in the bottom group move out of poverty. Once our economy becomes more stable, we hope to continue increasing wages,” he said.
Responding to Kuala Krai MP’s question on long-term strategies to prevent families from falling back into poverty, Anwar said the government was working on improving its data integration through the Central Database Hub (Padu) to monitor household income and prevent overlapping aid.
“Sometimes, families who have been lifted out of poverty fall back again. That’s why, apart from monthly aid, we’re adding new approaches such as microcredit through Amanah Ikhtiar Malaysia and Tekun.
“This ensures families can generate income and sustain themselves. We must help them not just survive, but move beyond dependency,” Anwar added.
